2nd
Quarter 2008
The purpose of this newsletter is never to be overly optimistic,
or pessimistic, about the local real estate market. Instead, the
purpose is to provide property owners with an accurate assessment
of current market conditions and trends. Having stated that, 2008
is off to a difficult start for real estate along the South Coast
of Santa Barbara County. Overall, the number of sales is down 28%
compared to the same period in 2007 (300 versus 418). For the second
straight quarter, the median price declined, dropping 4% to $962,500,
a level last seen in late 2004. And, for the first time in over
a decade, average prices declined, falling 12% to $1,788,370. This
is due in large part to a significant decline in sales of high priced
beach properties.
On a national level, foreclosure rates continue to climb to record levels, prompting
the government to put a tremendous amount of effort into stabilizing real estate
values. The Federal Reserve has dropped its discount rate dramatically (although
this has not translated into significantly lower mortgage rates). Various forms
of legislation are being proposed to offer relief to distressed homeowners. And,
in an effort to increase Buyer demand, the limit for conforming loans has been
increased in many areas, climbing from $417,000 to $729,000 in our area. Hopefully
these efforts will bring desired relief soon to distressed real estate markets.
Montecito
In Montecito, statistics for the number of sales mirror what is happening in
the rest of South Santa Barbara County, dropping 30% to 49 closed transactions. Average prices declined 18% to $3,753,449. Despite these discouraging figures, median prices posted a solid gain of 19%, to a record $3,100,000. In fact, Montecito
was the only market along the South Coast that enjoyed an increase in median price during the first quarter of 2008. Activity has been particularly robust
in the $4-10 million range.
If you are interested in finding out what has sold in the past year and for how much, we now have the following sales lists available to view: Montecito, Beachfront and Hope Ranch sales. Please click
here to request these lists.
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